The financial services authority is waiting for submissions from Bank of Valletta and other involved parties on two pending investigations into a property fund that went bust.

The Malta Financial Services Authority yesterday gave an update on the status of the two investigations but insisted it was bound by confidentiality.

It said it examined whether the property fund was sold to investors who were not eligible and looked into the allegation that persons connected to the licence holders divested their holdings when in possession of information that was not in the public domain.

The investigation revolves around BOV’s ill-fated La Valette Multi-Manager Property Fund.

“The authority has arrived at its conclusions on these two investigations... the process is now at a stage where all involved parties will be asked to submit representations to the authority.”

The MFSA insisted it will “resist pressure to set unrealistic or optimistic deadlines” by when the investigations should be concluded and would not participate in “media debates and speculation”.

“The authority will fulfil its duties painstakingly and responsibly,” it said.

In the first of three investigations concluded in June, the regulator found the bank guilty of breaching the conditions of the fund’s prospectus when investments were made in high risk sub-funds. The MFSA fined BOV and its subsidiary company a total of €347,816 for regulatory breaches.

The three investigations started last year.

The MFSA yesterday also insisted it was not a court of law and could not act as an arbitrator in disputes that could arise between a licence holder and its clients. “Specifically in the area of consumer complaints, the authority’s recommendations do not bind the financial entity or the complainant. Consequently, there may be cases where a licence holder or the consumer, or both, may choose not to accept the MFSA’s recommendations.”